Electric vehicles have gained significant traction in Ethiopia. The driving force behind this change: the world’s first prohibition on importing vehicles powered by fossil fuels.
Shashe Asemare handles the large steering wheel with ease, steering the mint-green city bus through the famously crowded streets of Addis Ababa. Since the Ethiopian capital added 100 new electric buses to its fleet in 2025, she has observed the advantages.
“These electric buses are completely different from the gasoline-powered ones,” she said, glancing at the cars overtaking her on the left. “They don’t produce exhaust fumes or that irritating noise.”
The clean, quiet buses have also proven popular among many of the 90,000 passengers who rely on the new rapid transit line for their everyday travel, such as Zeraye Tekelu.
“They’re very pleasant to ride in. They’re also superior because they don’t contaminate the air,” he said, describing it as “a positive development for our nation.”
Ban on imports of gasoline and diesel vehicles
Addis Ababa, one of Africa’s fastest-expanding cities, introduced the environmentally friendly buses last year, aligning with Ethiopia’s ban on importing gasoline and diesel cars.
Announcing the global first of its kind in early 2024, Transport Minister Alemu Sime highlighted Ethiopia’s backing for “green development.” This includes tax incentives for electric vehicles (EVs), 17 factories assembling electric vehicles using components from China, and a focus on eco-friendly public transport, including fully electric light rail.
While the government has promoted Ethiopia’s green aspirations, there is another key reason for the shift to electric power: the steep expense of imported fossil fuels.
The East African nation reportedly spent roughly €4 billion ($4.6 billion) on fuel imports in 2023 and 2024, a significant burden for one of the continent’s poorest countries. Conventional fuel prices have more than tripled since 2022.
In March, the Ministry of Transport & Logistics stated that global oil market instability caused by the Iran war demonstrated that Ethiopia needed to accelerate its transition and continue promoting electric vehicle use, along with other behavioral changes such as carpooling and opting for walking or cycling.
Just over two years after announcing the ban, more than 100,000 of Ethiopia’s 1.2 million registered vehicles are electric. The country aims for a 500,000 EV share by 2030.
Electric passenger cars account for over 5% of the nation’s total fleet, placing it on par with the European Union. This is in a country where roughly half of the population of over 110 million still lacks access to electricity.
Ethiopia’s EVs powered by hydropower
While EVs do eliminate tailpipe emissions, the electricity that powers them does not always come from a non-polluting source. Many nations still depend on natural gas, coal, or nuclear energy.
That is not the situation in Ethiopia. Known as “Africa’s water tower” due to its substantial rainfall and numerous rivers, including the source of the Nile, Ethiopia generates over 96% of its electricity from renewable hydropower. Additionally, the newly inaugurated Grand Ethiopian Renaissance Dam, with a capacity exceeding 5,000 megawatts of renewable energy, is anticipated to more than double the country’s electricity supply.
For many in Ethiopia, where annual salaries are often below €1,000 ($1,165; 187,000 Ethiopian birr), the starting price of a new electric car—€17,000—is high. However, taxi driver Abdurahman Ali is pleased he made the change.
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“To begin with, the EV is simply more comfortable,” he said, seated behind the wheel of his mint-colored Changan hatchback, a Chinese brand.
“Before switching, I used to drive a Toyota Vitz—every month I would spend 40,000-50,000 birr on fuel. Since switching to electric and charging at home, my monthly expenses have dropped to about 5,000 birr, at most. That’s a massive difference.”
More charging stations are required
But with more electric vehicles on the roads, Ethiopia is now encountering a different issue: charging.
“The government should focus heavily on this sector,” said Abdurahman, adding that charging services are only available in Addis Ababa, where “the number of charging stations is insufficient.” There are around 500 nationwide, most located in the capital.
Private operators like Ezekiyas Dufera have identified this gap in the market. Earlier this year, he launched a 24-hour charging station featuring an app that he says provides customers with full price transparency. Despite the demand, he has encountered some obstacles.
“There are challenges with occasional power outages,” he said, noting that the situation has improved. “But overall, it’s been a really excellent opportunity.”
Ezekiyas will have no shortage of customers as Addis Ababa is now planning to electrify the shared minibus taxi service. The backbone of the city’s public transport, it comprises 8,000 to 10,000 vehicles that carry over two-thirds of the city’s passengers daily.
Reporting by Shewangizaw Wegayehu in Addis Ababa.
Edited by: Tamsin Walker
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